OTTAWA, CANADA — (Marketwired) — 10/08/14 — DragonWave Inc. (TSX: DWI)(NASDAQ: DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for the second quarter of fiscal year 2015, ended August 31, 2014. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.
Revenue for the second quarter of fiscal year 2015 was $37.9 million, compared with $28.8 million in the first quarter of fiscal year 2015 and $25.5 million in the second quarter of fiscal year 2014. Revenue from the Nokia channel represented 60% of revenue in the second quarter of fiscal year 2015, versus 61% in both the first quarter of this fiscal year and the second quarter of fiscal year 2014. DragonWave had one other customer that contributed greater than 10% of revenue in the second quarter of fiscal year 2015.
Gross margin for the second quarter of fiscal year 2015 was 15.5%, compared with 20.5% in the first quarter of fiscal year 2015 and 11.0% in the second quarter of fiscal year 2014. The gross margin in the second quarter of fiscal year 2015 reflects the inclusion of an inventory impairment provision of $1.2 million. If you exclude this provision, the gross margin before inventory provision was 18.8% during the second quarter of fiscal year 2015.
Net loss applicable to shareholders in the second quarter of fiscal year 2015 was $8.9 million or ($0.14) per basic and diluted share. This compares to a net loss applicable to shareholders of $6.6 million or ($0.11) per basic and diluted share in the first quarter of fiscal year 2015 and a net loss applicable to shareholders of $10.5 million or ($0.28) per basic and diluted share in the second quarter of fiscal year 2014.
“We delivered another quarter of strong sequential growth,” said DragonWave President and CEO Peter Allen. “Our product leadership together with strong global capex cycles underpin the business momentum we are experiencing. We anticipate fiscal third-quarter revenue to grow between 20% and 30% compared to our fiscal second quarter.”
Cash and cash equivalents totaled $33.6 million at the end of the second quarter of fiscal year 2015, compared to $15.6 million at the end of the first quarter of fiscal year 2015.
Webcast and Conference Call Details:
The DragonWave management team will discuss the results on a webcast and conference call beginning at 8:30 a.m. Eastern Time on October 9, 2014.
The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at:
An archive of the webcast will be available at the same link.
Conference call dial-in numbers:
Toll-free North America Dial-in: (877) 312-9202
International Dial-in: (408) 774-4000
About DragonWave
DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave–s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave–s products is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave–s corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit .
DragonWave® and Horizon® are registered trademarks of DragonWave Inc.
Non-GAAP Financial Measures
This press release contains certain information that is not consistent with financial measures prescribed under GAAP. We break out “Gross margin before inventory provisions” as this measure allows management to evaluate our operational performance and compare to prior periods more effectively. The closest GAAP measure is gross margin, which as set forth in the release was 15.5% for the second quarter of fiscal year 2015. “Gross margin before inventory provisions” does not have any standardized meaning prescribed by GAAP, is therefore unlikely to be to be comparable to similar measures presented by other companies, and is not designed to replace other measures of financial performance or the statement of operations as an indicator of performance. This measure should not be considered in isolation or as a substitute for other measures of performance calculated according to GAAP. We use this non-GAAP measure because it provides additional information on our existing and active commercial operations performance.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to DragonWave–s growth opportunities and the potential benefits of, and demand for, DragonWave–s products, as well as our expectations regarding Q3 FY2015 revenues and the funnel for both direct sales and the Nokia channel. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of DragonWave–s products compared to competitive offerings in the industry, the timing of orders and deliveries, revenues and expenses, and constraints in the supply chain. Readers are cautioned not to place undue reliance on such statements. DragonWave–s actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by DragonWave with U.S. and Canadian securities regulatory authorities. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
Forward-looking statements are provided to assist external stakeholders in understanding DragonWave–s expectations as of the date of this release and may not be appropriate for other purposes. Material risks and uncertainties relating to our business are described under the heading “Risks and Uncertainties” in the MD&A dated October 8, 2014 and in the Company–s Annual Information Form and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at and , respectively.
Contacts:
Investor Contact:
John Lawlor
Investor Relations
DragonWave Inc.
613-599-9991 ext 2424
Media Contact:
Nadine Kittle
Marketing Communications
DragonWave Inc.
613-599-9991 ext 2262
Media Contact:
Becky Obbema
Interprose Public Relations
(for DragonWave)
(408) 778-2024
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